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Papa Murphy's Shutters 68 Stores Amid Industry Woes
2 Aug
Summary
- Pizza industry has fallen to sixth place in popularity.
- Inflation and delivery fees squeeze pizza chain profits.
- Papa Murphy's closes 68 underperforming corporate stores.
The pizza industry is experiencing a notable downturn, with pizzerias now ranking sixth in consumer preference, behind categories like coffee shops and Mexican restaurants. This decline has been ongoing since 2019, with many national chains, including Papa John's and Pizza Hut, having already closed hundreds of locations.
Several factors are contributing to this slump. Persistent inflation has led consumers to order less frequently, while third-party delivery services are reducing profit margins and diverting valuable customer data. Consequently, customers are ordering smaller pizzas with fewer toppings.
Papa Murphy's, known for its unique take-and-bake model, has announced it will close 68 underperforming corporate-owned stores. CEO Eric Lefebvre stated this decision is part of an ongoing review to enhance business quality and profitability. This strategic contraction aims to address the financial pressures affecting the wider pizza market.
